Highland Rocks Project EL 27511 Partial surrender report for the period 18 November 2015 to 17 November 2017

Abstract

This report discusses exploration activities on the relinquished portion of EL 27511, located approximately 535 km north-west of Alice Springs, Northern Territory, and covers the period 18th November 2015 to 17th November 2017. EL 27511 (151 sub-blocks) was granted to Tychean Resources Ltd (Tychean; formerly ERO Mining Ltd) on 18th November 2015 for a period of 6 years. During 2014 Ramelius Resources Ltd entered into a Farm-in Agreement with Tychean Resources Limited, comprising the Tanami Joint Venture, which includes EL 27511. Ramelius are operators of the project and can earn an 85% Joint Venture Interest in the tenement package by sole funding $500,000 over 3 years. At the end of the 2nd year of tenure the license was reduced to 75 sub-blocks from the original 151. This partial relinquishment report refers to work carried out on the 76 relinquished sub-blocks for the total period of tenure. The target commodity on EL 27511 is gold. Work completed on the relinquished area included compilation and interpretation of historical exploration and open file government data, target generation, surface sampling and shallow vacuum drilling. Geochemical sampling across areas of prospective Tanami Group sediments with shallow transported cover did not identify anomalous gold or pathfinder elements. This resulted in a decision to relinquish sub-blocks in this area. The depth of transported material is interpreted to increase towards the southeast, meaning drilling is likely required to adequately test targets in the retained portion of EL 27511.